The International Stainless Steel Forum (ISSF) expects that stainless crude steel production in 2007 will be higher than the record-level of production in 2006, mostly driven by recovery from 2005 and some restocking. High raw material prices, especially for nickel, encourage ISSF to promote ferritic grades as an economic and effective solution for the main applications of stainless steel, like heat exchangers.

According to the organization’s press release, stainless steel production should reach 29.8 million metric tons in 2007. This represents a rise of 5.1 % on 2006 production. The growth rate of 5.1%, almost on the long term average, takes into account the very high level of supply which occurred in many countries during 2006 and caused a significant build-up of stainless steel stock at service centres and fabricators. Actual global stainless steel production in 2006 increased by 16.7 % to 28.4 million metric tons compared to 2005. This more than compensated for the downturn in production during 2005 (-1,1%).

The forecast released during ISSF’s Annual Conference in Japan states that Asia is by the far largest stainless steel producing area in the world. During 2006 this region again showed the strongest increased stainless steel production by almost 21% and ISSF expects further high growth of approximately 12% in 2007 to almost 16.9 million metric tons. China, which became the world’s leading stainless steel producer in 2006, will continue to expand its stainless steel melting activities with significant new capacities in the start-up phase. In 2007, China will be the driving force followed by India and its lead over Japan, the second-highest stainless steel producer, is expected to increase.